Where (1) the plaintiffs who have alleged that the defendants failed to repay a $24,000 loan brought a claim for statutory conversion seeking trebled damages totaling $72,000 and (2) the defendants have filed a motion for summary disposition arguing that the plaintiffs’ conversion claim is barred by the applicable statute of limitations and that there is a lack of subject matter jurisdiction over the remaining claims because the amount in controversy does not exceed $25,000, the conversion claim is time-barred but the plaintiffs should be afforded an opportunity to transfer the action to district court.
“Plaintiffs’ June 4, 2026 complaint alleges that they loaned $24,000 to defendants on June 6, 2020 (Complaint ¶¶ 7, 11 and 12), the loan was to be re-paid within three to four months (Complaint ¶¶ 9 and 11), and defendants failed to do so (Complaint ¶ 13). …
“Accordingly, the court concludes that, the applicable limitation period being three years, MCL 600.5805(2), and the accrual date being October 6, 2020, plaintiffs’ June 4, 2026 conversion claim is time-barred. …
“With dismissal of the statutory conversion claim (and its potential for treble damages), plaintiffs are left with causes of action that seek recovery in the principal amount of $24,000 (Complaint, prayer for relief). …
“Since district courts have exclusive jurisdiction over cases involving damages up to $25,000, the amount in controversy here is $24,000 (or less), and venue appears proper in Saginaw County, this case should be transferred to the 70th District Court. However, the court will condition transfer on plaintiffs paying defendants reasonable attorney fees related to the errant filing, MCR 2.227(C)(1). …
“Plaintiffs’ multi-count complaint is premised on non-payment of a $24,000 loan, with a claim for statutory conversion potentially raising the amount in controversy to $72,000. Defendants argue the conversion claim is time-barred and, once dismissed, plaintiffs’ remaining claims fall within the exclusive jurisdiction of district court.
“Having considered the parties’ arguments, the court concludes that plaintiffs’ conversion claim is barred by a three year statute of limitation but, rather than dismissing the remaining claims for want of subject matter jurisdiction, the court will allow their transfer to district court upon satisfaction of applicable conditions.”
Salame v. Kholkhar; MiLW No. 10-111239, 8 pages; Saginaw County Circuit; Jurrens, J.